Thermo Fisher Scientific Inc (TMO)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 4,009,000 | 8,077,000 | 8,524,000 | 4,477,000 | 10,325,000 |
| Short-term investments | US$ in thousands | 1,561,000 | -1,967,000 | 2,000 | — | 28,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 13,332,000 | 14,012,000 | 17,010,000 | 13,436,000 | 10,304,000 |
| Quick ratio | 0.42 | 0.44 | 0.50 | 0.33 | 1.00 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,009,000K
+ $1,561,000K
+ $—K)
÷ $13,332,000K
= 0.42
The quick ratio of Thermo Fisher Scientific Inc has shown some fluctuations over the past five years. Starting at 1.00 on December 31, 2020, the ratio decreased to 0.33 on December 31, 2021, indicating a significant decline in the company's ability to meet its short-term obligations using its most liquid assets. However, there was a slight improvement in the quick ratio to 0.50 on December 31, 2022, showing some recovery in the company's liquidity position.
Subsequently, the quick ratio dipped to 0.44 on December 31, 2023, before declining further to 0.42 on December 31, 2024. These lower quick ratios suggest that Thermo Fisher Scientific Inc may be facing challenges in maintaining sufficient liquid assets to cover its short-term liabilities comfortably.
Overall, the trend in the quick ratio indicates some volatility in Thermo Fisher Scientific Inc's liquidity position over the past five years, with a general downward trajectory in recent years. This may be a point of concern for stakeholders as it could indicate potential liquidity issues that need to be addressed.
Peer comparison
Dec 31, 2024